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Science
15 February 2025

Algeria's Bold Strategy To Lead Global Green Hydrogen Market

Leveraging abundant solar resources and sustainable water management to drive production potential.

Algeria is making significant strides toward becoming a major player in the global green hydrogen market, driven by its abundant solar resources and strategic geographical advantages. Amid rising concerns over climate change and the need for sustainable energy solutions, this North African nation is positioning itself as a key contributor to the global shift away from fossil fuels.

The latest research published by Benchenina et al. provides new insights on how Algeria can effectively leverage its solar energy potential to produce green hydrogen—a clean, renewable energy source generated through the process of electrolyzing water. The study highlights both challenges and opportunities within Algeria's diverse geographic regions, making it clear why green hydrogen is seen as central to the country’s energy future.

At the heart of this innovative shift is Algeria’s rich solar energy potential. With over 3,000 hours of sunshine per year and average solar irradiation levels ranging from 1,700 kWh/m² in the north to over 2,200 kWh/m² in the south, the country boasts resources well-suited for large-scale solar energy projects. Utilizing advanced simulation tools such as HOMER Pro, researchers compared electricity productivity from photovoltaic (PV) systems across different regions of Algeria, with the results indicating exceptional productivity rates.

The findings are noteworthy. Desert regions like Tamanrasset and Adrar achieve the highest photovoltaic electricity output, generating impressive annual yields of 33.5 GWh/year and 32.9 GWh/year, respectively. This translates to substantial green hydrogen production capacities of 679 tons/year and 668 tons/year. Conversely, northern regions like Tlemcen and Skikda, which may not be as sunnied, still show impressive outputs of 29 GWh/year and 26.6 GWh/year, resulting estimated hydrogen production of 589 tons/year and 539 tons/year respectively. Notably, Skikda's hydrogen output surpasses those of well-established producers such as Germany and Australia, showcasing Algeria’s significant competitive edge.

Despite the abundant solar and hydrogen production capabilities, the research also emphasizes the need for effective water resource management—a challenge inherent to Algeria's climate dynamics. While desert environments promise high energy returns, their reliance on non-renewable groundwater sources poses sustainability concerns. Over-reliance on groundwater could lead to severe depletion of aquifers, risking ecological imbalance and endangering local communities. Consequently, this study advocates for exploring alternative water sources like seawater and treated wastewater to mitigate these impacts effectively.

“Our research highlights the untapped potential of northern Algeria, which benefits from substantial solar energy potential alongside sustainable water resources,” the authors explain. This viewpoint encourages using seawater through desalination processes and leveraging wastewater treatment facilities to create reliable water supplies for hydrogen production without compromising groundwater reserves.

With existing infrastructure, Algeria finds itself at the perfect crossroads, linking its capabilities to European markets eager for sustainable energy solutions. The country's adjacency to European nations presents unique opportunities for hydrogen export, tapping existing gas pipelines, which can seamlessly integrate hydrogen transport within regional energy grids. This alignment reduces logistical costs and improves economic feasibility for Algeria's hydrogen ambitions.

“Producing hydrogen near gas pipelines reduces transportation and storage costs, enhancing economic viability,” the authors note, making clear the importance of geographical positioning. Projects such as the 'Corridor Sud H2'—which aims to transport 4 million tons of hydrogen annually to Italy—are already showing promise of fulfilling the burgeoning demand for green hydrogen.

While challenges remain, particularly around technology implementation and optimizing electrolyzer efficiency, the economic projections are encouraging. The cost of producing green hydrogen using photovoltaic energy falls between $1.68/kg and $2.11/kg, positioning Algeria favorably against competitors globally. Continued investments and strategic projects like MedHySol—a collaboration aimed at larger-scale hydrogen production for export—are also likely to drive the nation forward.

Looking to the future, the insights from this comprehensive analysis suggest not only the feasibility of green hydrogen production across various regions of Algeria but also the importance of adopting integrated strategies which encompass renewable energy production, sustainable water management, and export logistics.

By continuing to develop and optimize these systems, Algeria stands poised to become a prominent player in the global green hydrogen market, offering solutions to both domestic energy needs and international sustainability goals. The study concludes on this hopeful note, highlighting Algeria’s commitment to environmental stewardship and renewable energy, thereby ensuring its future role as a leader in the global transition to clean energy.